MCQOPTIONS
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MCQOPTIONS
This section includes 1375 Mcqs, each offering curated multiple-choice questions to sharpen your Commerce knowledge and support exam preparation. Choose a topic below to get started.
| 1101. |
_________ is also known as working capital ratio.$? |
| A. | Current ratio |
| B. | Quick ratio |
| C. | Liquid ratio |
| D. | Debt-equity ratio |
| Answer» B. Quick ratio | |
| 1102. |
Fixed cost per unit increases when _______.$? |
| A. | variable cost per unit increases |
| B. | variable cost per unit decreases |
| C. | production volume increases |
| D. | production volume decreases |
| Answer» E. | |
| 1103. |
Recreation expenses in factory are apportioned on the basis of ________.$? |
| A. | material cost |
| B. | wages |
| C. | prime cost |
| D. | number of employees |
| Answer» E. | |
| 1104. |
Cost accounting concepts include all the following except ________.$? |
| A. | planning |
| B. | controlling |
| C. | profit sharing |
| D. | product costing |
| Answer» D. product costing | |
| 1105. |
Time keeping refers to _______.$? |
| A. | time spent by worker on their job |
| B. | time spent by workers in the factory |
| C. | time spent by workers without work |
| D. | time spent by workers off their job |
| Answer» C. time spent by workers without work | |
| 1106. |
Labour cost is the second element of ________.$? |
| A. | cost |
| B. | profit |
| C. | sales |
| D. | task |
| Answer» B. profit | |
| 1107. |
Discarded material substances having no value is called ________.$? |
| A. | waste |
| B. | scrap |
| C. | defectives |
| D. | spoilage |
| Answer» B. scrap | |
| 1108. |
Warehouse rent is a part of ________.$? |
| A. | prime cost |
| B. | factory cost |
| C. | distribution cost |
| D. | production cost |
| Answer» D. production cost | |
| 1109. |
Profit to be transferred to profit and loss a/c, if the contract is complete to the extent of only 20% is ________.$? |
| A. | nil |
| B. | 20% |
| C. | 25% |
| D. | 75% |
| Answer» B. 20% | |
| 1110. |
The term cost refers to ________.$? |
| A. | the present value of future benefits |
| B. | the value of sacrifice made to acquire goods or services |
| C. | an asset that has given benefit but now expired |
| D. | the price of products sold or services rendered |
| Answer» C. an asset that has given benefit but now expired | |
| 1111. |
The type of process loss that should not affect the cost of inventory value is _________.$? |
| A. | abnormal loss |
| B. | normal loss |
| C. | seasonal loss |
| D. | standard loss |
| Answer» B. normal loss | |
| 1112. |
Actual loss is less than the predetermined normal loss, it is ________.$? |
| A. | normal loss |
| B. | abnormal loss |
| C. | seasonal loss |
| D. | abnormal gain |
| Answer» E. | |
| 1113. |
When two products are simultaneously produced in a process and one of them has comparatively high value and other is of low value , the low value product is called __________.$? |
| A. | joint products |
| B. | by products |
| C. | seasonal products |
| D. | economic products |
| Answer» C. seasonal products | |
| 1114. |
Cost of process Rs1,60,000 and profit to be charged on the transfer price is 20% What is the inter process profit?$? |
| A. | Rs 32,000 |
| B. | Rs 40,000 |
| C. | Rs 48,000 |
| D. | Rs 54,000 |
| Answer» C. Rs 48,000 | |
| 1115. |
The basis for determining profit to be taken into account on incomplete contract is ________.$? |
| A. | cost of contract |
| B. | contract price |
| C. | percentage of work certified as done |
| D. | uncertified work |
| Answer» D. uncertified work | |
| 1116. |
Direct material is a ________.$? |
| A. | manufacturing cost |
| B. | administrative cost |
| C. | selling cost |
| D. | distribution cost |
| Answer» B. administrative cost | |
| 1117. |
In a machine dominated industry which method of overhead absorption is suitable?$? |
| A. | Direct material cost method |
| B. | Prime cost method |
| C. | Labour hour method |
| D. | Machine hour method |
| Answer» E. | |
| 1118. |
Responsibility Centre can be categorised into:$? |
| A. | Cost Centres only |
| B. | Profit Centres only |
| C. | Investment Centres only |
| D. | Cost Centres, Profit Centres and Investment Centres |
| Answer» E. | |
| 1119. |
Abnormal cost is the cost:$? |
| A. | Cost normally incurred at a given level of output |
| B. | Cost not normally incurred at a given level of output |
| C. | Cost which is charged to customer |
| D. | Cost which is included in the cost of the product |
| Answer» C. Cost which is charged to customer | |
| 1120. |
"Calculate the prime cost from the following information:Direct material purchased: Rs. 1,00,000.Direct material consumed: Rs. 90,000.Direct labour: Rs. 60,000.Direct expenses: Rs. 20,000.Manufacturing overheads: Rs. 30,000."$? |
| A. | Rs. 1,80,000 |
| B. | Rs. 2,00,000 |
| C. | Rs. 1,70,000 |
| D. | Rs. 2,10,000 |
| Answer» D. Rs. 2,10,000 | |
| 1121. |
Stores Ledger is a:$? |
| A. | Quantitative as well as value wise records of material received, issued and balance |
| B. | Quantitative record of material received, issued and balance |
| C. | Value wise records of material received, issued and balance |
| D. | a record of labour attendance |
| Answer» B. Quantitative record of material received, issued and balance | |
| 1122. |
Profit forgone by capital investment in inventory rather than investment of capital to somewhere else is classified as? |
| A. | relevant purchase order costs |
| B. | relevant inventory carrying costs |
| C. | irrelevant inventory carrying costs |
| D. | relevant opportunity cost of capital |
| Answer» E. | |
| 1123. |
Systematic flow of services, goods or information from buying material for product delivery to customers is known as? |
| A. | supply chain |
| B. | value chain |
| C. | material flow chain |
| D. | manufacturing flow chain |
| Answer» B. value chain | |
| 1124. |
If demand of one year is 25000 units, relevant ordering cost for each purchase order is $210, carrying cost of one unit of stock is $25 then economic order quantity will be? |
| A. | 678 packages |
| B. | 648 packages |
| C. | 658 packages |
| D. | 668 packages |
| Answer» C. 658 packages | |
| 1125. |
Direct cost assignment for specific cost object is classified as? |
| A. | cost object line cost |
| B. | cost tracing |
| C. | cost object indirect cost |
| D. | cost object staff cost |
| Answer» C. cost object indirect cost | |
| 1126. |
Cost which is related to specific cost object and cannot be economically traceable is classified as? |
| A. | line cost |
| B. | staff cost |
| C. | direct cost |
| D. | indirect cost |
| Answer» E. | |
| 1127. |
Under which method the rate of wages are linked with the cost of living index?? |
| A. | Flat time rate |
| B. | High day rate |
| C. | Measured day rate |
| D. | Graduated time rate |
| Answer» E. | |
| 1128. |
Under ABC method of material control, the material are classified according to __________.? |
| A. | its value |
| B. | its usage |
| C. | its nature |
| D. | its availability |
| Answer» B. its usage | |
| 1129. |
According to which method of pricing issues is close to current economic values?? |
| A. | Last In First Out |
| B. | First In First Out |
| C. | Highest In First Out |
| D. | weighted average price |
| Answer» B. First In First Out | |
| 1130. |
Variable cost per unit ________.? |
| A. | varies when output varies |
| B. | remains constant |
| C. | increase when output increases |
| D. | decreases when output decreases |
| Answer» C. increase when output increases | |
| 1131. |
Packing cost is ________.? |
| A. | production cost |
| B. | selling cost |
| C. | administration cost |
| D. | distribution cost |
| Answer» E. | |
| 1132. |
Depreciation of plant can be apportioned on the basis of ________.? |
| A. | plant value |
| B. | plant size |
| C. | working days |
| D. | output produced |
| Answer» B. plant size | |
| 1133. |
Overhead is also known as ________.? |
| A. | ongoing cost |
| B. | basic cost |
| C. | extra cost |
| D. | chargeable expenses |
| Answer» B. basic cost | |
| 1134. |
Cost of idle time arising due to non availability of raw material is _______.? |
| A. | charged to costing profit and loss account |
| B. | charged to financial profit and loss account |
| C. | charged to factory overhead |
| D. | recovered by inflating the wage rate |
| Answer» B. charged to financial profit and loss account | |
| 1135. |
Bonus under Halsey plan is paid ________.? |
| A. | at 50% of time saved |
| B. | at 75% of time saved |
| C. | at 80% of time saved |
| D. | at 90% of time saved |
| Answer» B. at 75% of time saved | |
| 1136. |
Bin card is maintained by ________.? |
| A. | costing department |
| B. | stores department |
| C. | finance department |
| D. | accounting department |
| Answer» C. finance department | |
| 1137. |
Piece workers are paid on the basis of ________.? |
| A. | output sold |
| B. | output produced |
| C. | output in stock |
| D. | input received |
| Answer» C. output in stock | |
| 1138. |
ABC analysis is ________.? |
| A. | At best Control |
| B. | Always better Control |
| C. | Average better Control |
| D. | All best control |
| Answer» C. Average better Control | |
| 1139. |
Average method of pricing the material issues is useful when ___________.? |
| A. | material prices are rising |
| B. | material prices are falling |
| C. | material prices are constant |
| D. | material prices are fluctuating |
| Answer» E. | |
| 1140. |
Conversion cost is subtracted from direct manufacturing labour cost is to calculate the? |
| A. | direct overheads |
| B. | overhead costs |
| C. | factory overhead |
| D. | manufacturing overhead cost |
| Answer» E. | |
| 1141. |
All costs, which are assigned to manufactured products for specific calculations are classified as? |
| A. | contracting costs |
| B. | product cost |
| C. | government costs |
| D. | marketing costs |
| Answer» C. government costs | |
| 1142. |
Cost which is changed in proportion to level total volume is? |
| A. | fixed cost |
| B. | variable cost |
| C. | total cost |
| D. | infeasible cost |
| Answer» C. total cost | |
| 1143. |
An overtime is considered in cost accounting as? |
| A. | indirect costs |
| B. | overhead costs |
| C. | premium costs |
| D. | both a and b |
| Answer» E. | |
| 1144. |
Direct service labour is $5000, idle time wages are $1000 and overtime premium is $450, then total figure would be? |
| A. | $4,450 |
| B. | $6,450 |
| C. | $21,500 |
| D. | $14,300 |
| Answer» C. $21,500 | |
| 1145. |
Direct manufacturing labour costs is added into manufacturing overhead cost to calculate? |
| A. | transaction costs |
| B. | conversion costs |
| C. | resale costs |
| D. | merchandise costs |
| Answer» C. resale costs | |
| 1146. |
Conversion cost is subtracted from manufacturing overhead cost is to calculate the? |
| A. | manufacturing labour costs |
| B. | direct labour costs |
| C. | direct manufacturing labour costs |
| D. | indirect manufacturing labour costs |
| Answer» D. indirect manufacturing labour costs | |
| 1147. |
Balance sheet, in which all costs of product that must be considered as its assets, is said to be? |
| A. | factory overhead costs |
| B. | manufacturing overhead costs |
| C. | Inventoriable costs |
| D. | finished costs |
| Answer» D. finished costs | |
| 1148. |
An under allocated indirect cost is also called? |
| A. | under applied indirect cost |
| B. | under absorbed indirect cost |
| C. | absorbed indirect cost |
| D. | both a and b |
| Answer» E. | |
| 1149. |
Process of assigning direct or indirect cost to any cost object is known as? |
| A. | cost assignment |
| B. | cost expectation |
| C. | event assignment |
| D. | probability assignment |
| Answer» B. cost expectation | |
| 1150. |
A document which consists information about labour time usage, for specific job in a specific department, is known as? |
| A. | selling time record |
| B. | labour time record |
| C. | buying time record |
| D. | direct time record |
| Answer» C. buying time record | |